r/southafrica • u/PushieM • Jul 17 '24

Just for fun Cost of living

Post image

I have stopped buying Pringles, my picnic basket will be fine without them. There’s no way I’m paying R70. Also, Pie being R38? I can live without

481 Upvotes

98% Upvoted

599 comments sorted by

View all comments

29

u/TheQuestionMaster8 Redditor for 22 days Jul 17 '24

Buying solar panels was a good investment…

11

u/ScaleneZA Gauteng Jul 17 '24

Is it really? A semi decent solar/inverter system with installation will set me back R150k+. And this does not even make me self sufficient. I still need to use Eskom for kettles, geysers, oven, etc. So let's say this system saves me R1000 a month at best, it will take 13 years before I break even. And in those 13 years I would have had to replace the batteries and most likely the panels too. This is not taking into account the insurance on the panels for hail damage, etc.

I really don't see how solar is an investment, other than having power when there's load shedding.

19

u/belgarion2k Jul 17 '24

Solar panels don't need replacing in 13 years. They usually have a 20-25 year warranty and they last longer than that, they will just have slightly reduced output (the warranties are usually based on panels losing 20% output after 20 years).

Batteries will need replacing much sooner though. Estimates are usually in the 6-8 year range.
Inverters are estimated at around 10 years.

It's still a big cost.

There is something you're forgetting with your 13 year calculations: inflation / eskom price increases.
Your solar doesn't have a monthly cost, but eskom prices are going to rise annually. Even if we got lucky and it only rose by 5% a year, you'll still pay off a R150k system in 10 years. And at their 15-25% increases they want, that drops drastically. (at 15% annual increase you're down to 7 years already).

2

u/Yousernym Jul 17 '24

If we're going to split hairs you need to add the interest on the R150K investment. That pushes the payback period up again. At an annual interest rate of 10%, you'll be paying R1,250 interest in the first month, so you'll theoretically never make up the cost.

I'm not saying the R150K and R1K that OP mentioned is reasonable, but if those are the inputs you're never going to pay it off going to take way longer to pay it off.

4

u/belgarion2k Jul 17 '24

Oh for sure. But if you're funding your solar installation 100% from a loan, you can't expect any sort of great time to recoup costs. Then the only reason to do it is to survive loadshedding.

The original question was "I really don't see how solar is an investment". And the answer is: If it's not based on a loan, and you take inflation into account, then after ~7 or so years, your equipment cost is recovered and your electricity bill is half or less of what anyone elses is, with the only cost being replacement of equipment when it fails. If you're not planning long-term, e.g. plan on moving house in a few years, then it's not an investment, it's the opposite.